Microsoft, Nokia Target Low End in Effort to Crack Tough U.S. Market

For the most part, Windows Phone has found itself targeting the premium segment of the U.S. smartphone market.

That’s especially tough in a country like the U.S., where big phone subsidies mean that one has to compete against free iPhone 4 and Android devices. Even the top-end devices generally sell for under $200 with a contract.

However, with T-Mobile’s recent move away from phone subsidies, Nokia and Microsoft are pouncing on an opportunity to offer a new smartphone at a noticeably lower price.

The Lumia 521, which runs on T-Mobile’s network, sells for around $150 unsubsidized. That’s hundreds less than many other smartphones. It goes on sale at Walmart and Microsoft stores next week, after selling out during a run on HSN.

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